Issues of bank notes. § 1, subdiv. 8, modified. § 27. It shall not be lawful for any moneyed corporation 1 R. S. 588, to issue, or to have outstanding or in circulation, at any time, an amount of notes or bills loaned or put in circulation as money, exceeding twice its capital stock then paid in and actually possessed; nor shall its loans and discounts at any time exceed twice and a half of the amount of its capital stock so paid in and possessed. [See note 3, p. 4, ante.] Corporation when to be § 28. If any such moneyed corporation shall violate the dissolved. last preceding section; or shall neglect to make any annual payment to the treasurer of this State, required by this act, for the space of three months after the time when the same ought to have been made, and after being notified of such delinquency by the comptroller of this State; or shall have lost one half of its capital stock paid in; or shall have suspended the payment of its bills in specie for ninety days; or shall refuse to allow the officers of such corporation to be examined upon oath by the said commissioners, in relation to the affairs and condition of such corporation, every such corporation may be proceeded against by the said commissioners, and dissolved by the chancellor, as an insolvent corporation, as herein before provided. Penalty for fal-e statements, &c. § 29. Every officer, agent, or clerk of a moneyed corporation, who shall make false statements or false entries in the books of such corporation, or shall exhibit false papers with intent to deceive said commissioners as to the condition of such corporation, shall be deemed guilty of felony, and shall be subjected to imprisonment in the state prison, for a term not less than three, nor more than ten years. Liability of § 30. The fourteenth, fifteenth, sixteenth, seventeenth, Chap. 18 of and eighteenth sections of the second Title of the eight stockholders, fled. eenth Chapter of the first Part of the Revised Statutes, 1 R. s. modiso far as they provide for the personal liability of the stockholders of any insolvent corporation, shall not apply to any corporation subject to the provisions of this act; but the directors of every corporation subject to this act shall be liable to the stockholders thereof, as provided in the said sections. [See note 6, p. 13, ante.] statement. Chap 18. of 1 R. S. modifled. § 31. The nineteenth, twentieth, twenty-first, twenty-se- Annual cond, twenty-third, and twenty-fourth sections of the second Title of the eighteenth Chapter of the first Part of the Revised Statutes, shall be and are hereby so far modified, in respect to the corporations subject to this act, that the statements therein required shall be made to the bank commissioners, instead of the comptroller; and the powers therein conferred on the comptroller, shall not extend to any such corporation. [See note 6, p. 13, ante.] ers, not to be § 32. No stockholder of any moneyed corporation hav-Commissioning banking powers, shall be appointed a commissioner stockholders. under and by virtue of this act; and it shall not be lawful for the said bank commissioners, or either of them, directly or indirectly to purchase, or in any manner whatever to be concerned in any bank stock in this State. rest. § 33. Every moneyed corporation subject to this act, Rate of inteshall be entitled to receive the legal interest established, or which may hereafter be established, by the laws of this State, on all loans by them made, or notes or bills by them severally discounted or received in the ordinary course of business; but on all notes or bills by them discounted or received in the ordinary course of business, which shall be mature in sixty-three days from the time of such discount, the said moneyed corporation shall not take or receive more than at and after the rate of six per centum per annum, in advance. Capital stock The issue of post-notes § 34. Every moneyed corporation subject to this act, hereafter to be created, shall before it makes any loans or discounts, have all its capital actually paid in; which payment shall be proved, on oath, to the satisfaction of the bank commissioners, before any such loans or discounts shall be made; and every moneyed corporation, whose charter shall be hereafter extended, shall, within one year after such extension takes effect, pay in all its capital, to be proved in like manner to said bank commissioners; but every such moneyed corporation, whose charter shall be so hereafter extended, shall be permitted to reduce its capital stock to any sum not below the amount actually paid in at the time of the renewal of its charter; but such corporation shall, within one year from and after the time of such renewal, file with the comptroller a certificate, under the seal of the corporation, setting forth the sum to which its capital stock is to be reduced, as aforesaid; the filing of which certificate shall exempt such corporation from the operation of this section, as to so much of its capital stock as shall be reduced in the manner above stated. 35. No moneyed corporation subject to the provisions prohibited. of this act, shall issue any bill or note of the said corporation, unless the same shall be made payable on demand, and without interest. (14) (14) By § 1 of this Act, it is enacted, that "every moneyed corporation having banking powers, hereafter to be created in this State, or whose charter shall be renewed or extended, shall be subject to the provisions of this Act.” The Act is entitled, 66 An Act to create a fund for the benefit of certain moneyed Corporations,—and for other purposes." By § 52 (p. 23, ante) of the General Code of Statute Regulations, amended by this act of April 2d, 1829, it is declared, that the provisions of this Title shall be construed to apply to every moneyed corporation created" after January 1, 1828, "unless such corporation shall be expressly exempted from the provisions of this Title, in the act creating, renewing, or extending such corporation." (1 R. S. 599, § 52.) In October, 1852, the Court of Appeals, in the case of Talmage v. Pell, RESTRAINING ACT OF 1830. (1 Revised Statutes, pp. 711, 712, 713.) TITLE XX. OF UNAUTHORIZED BANKING, AND THE CIR- for certain § 1. No person unauthorized by law shall subscribe to, Associations or become a member of, or be in any way interested any association, institution, or company, formed, or to in, banking pur poses probibited. See be act of Feb. 4, held:-"That every association organized under the act to authorize the business of banking, and the acts amending the same, is a moneyed corporation within the meaning of the Statutes of this State relating to moneyed corporations,--and is bound and affected by those statutes-excepting only so far as such statutes are inconsistent with the provisions either of the act to authorize the business of banking, or of the acts amending the same;”—and also held,-"That such associations are banking corporations, and possess only authority to carry on the business of banking in the manner and with the powers specified in the said act." (3 Selden, 328, 347, 348.) The Safety Fund Banks have, among their express powers, the general unrestricted express power to carry on the business of banking, "by issuing bills, notes, and other evidences of debt;"-yet, these banks were expressly prohibited by the above § 35 from issuing any bill or note payable on time,—or payable with interest. (See Safety Fund Charters, § 3 or § 4.) This general express power "to issue bills, notes, and evidences of debt," is not granted to banking corporations formed under the General Bank Act of 1838. (Laws 1838, p. 249, § 18.) But these corporations are authorized to loan and circulate, as money, countersigned promissory notes (“received from the Comptroller" payab'e on demand), “according to the ordinary course of banking business, as regulated by the laws and usages of this State." (Laws 1838, p. 246, § 3.) 18, post. 1837, In note formed, for the purpose of receiving deposits, making discounts, or issuing notes or other evidences of debt to be loaned or put in circulation as money; nor shall any person unauthorized by law, subscribe to, or become in any way interested in, any bank or fund created, or to be created, for the like purposes or either of them. ( 15 ) There is no clause or provision in the General Bank Act expressly exempting banking associations, formed under it, from the operation of any of the provisions of the general code of statute regulations of 1827, as amended by the act of April 2d, 1829, The provisions of this amendatory act relating to the creation of a "Bank Fund," are inapplicable to associations under the general law of 1838, not because such associations are not "moneyed corporations having banking powers," but for the reason, that the issues of such associations, are placed under the direction of the State Comptroller, and are secured in full by specific pledges of State stocks, &c., with that officer. But it cannot be pretended that the prohibition contained in the above 35th section is inconsistent with any section or provision of the General Bank Act. Besides, the settled policy of this State, as to the issue of post-notes or post-bills by banks, remained unchanged at the time of the passage of the General Act of April 18th, 1838. As to the repeal of former statutes by implication, see Bowen v. Lease (5 Hill, 221). As to the issue of post-notes or post-bills by moneyed corporations, see Leavitt v. Palmer (3 Comstock, 19); Bank Commissioners v. the St. Lawrence Bank (3 Selden, 513); Talmage v. Pell (3 Selden, 328); Safford v. Wyckoff (1 Hill, 11 S. C.; 4 Hill, 442); Bank of Orleans v. Merrill (2 Hill, 295); Smith & Warner v. Strong (2 Hill, 241); Swift v. Beers (3 Denio, 70); Attorney General v. Life Ins. and Trust Company (9 Paige, 471); Ontario Bank v. Schermerhorn (10 Paige, 109); Leavitt v. Yates (4 Edw. Ch. R. 184); Tylee v. Yates (3 Barb., S. C. R. 222); Bank of Chillicothe v. Dodge (8 Barb., S. C. R. 233). See, also, Root v. Godard (3 McLean, 102); Hayden v. Davis (3 McLean, 276); Root v. Wallace (4 McLean, 8); Davis v. The Bank of the River Raisin (4 McLean, 387). See, also, Southern Loan Company v. Morris (2 Barr's Penn. R. 175); In the Matter of the Ohio Life Insurance and Trust Company (9 Ohio, 291); Lawler v. Walker (18 Ohio, 151). See, also, 4 of the act of May 14, 1840, and note thereon, post. (15) The Revisers' Notes on Title XX. are as follows (3 R. S., 2 ed., p. 562): "§ 1 as reported; enlarged as enacted § 1. No person unauthorized by law shall subscribe to or become a member of any association, institution, or |